Bart Industries is about to be purchased by Kramer Enterprises. Both firms are in the rocks and mineral industry. As one of the founders of Bart Industries, you are concerned about the value of the equity in the firm. You have acquired the following data on your firm: 1. Bart has 200,000 shares of stock authorized, with 12
Don't Let Crooks Steal Your Identity: How to Protect Yourself—and Your Credit Rating In 2009 Consumer Sentinel, the complaint database developed and maintained by the Federal Trade Commission, received over 1.3 million consumer fraud and identity theft complaints. Consumers reported losses from fraud of more than $1.7 bi
Which Job? Are You Sure? "Wow, you mean you have three job offers? How did that happen?" "I'm not quite sure, Joan," responded Alexia. "I guess I just carefully prepared for my job search." "Ahhh . . . could you be a bit more specific for those of us who have no job offers?" asked Joan. "After researching various organizations,
Suppose you own a concession stand that sells hot dogs, peanuts, popcorn, and beer at a ball park. You have three years left on the contract with the ball park, and you do not expect it to be renewed. Long lines limit sales and profits. You have developed four different proposals to reduce the lines and increase profits. The
This article in Governing looks at fiscal outlook for state and local governments. Elected officials have to review this type of information so they can properly plan for the future. http://www.governing.com/blogs/by-the-numbers/gao-states-local-governments-fiscal-outlook-report.html How would this information impact your
Can you please help me find the payback period for the following? I am considering the purchase of new Garland brand energy-efficient refrigerators for a chain of 60 restaurants. These new refrigerators will cost $10,000 each and will have useful lives of five years before they will need to be replaced. Installation of the tota
4. Keeshawn invests $20,000 in a stock fund that has been paying 8% compounded quarterly for the past 10 years. Assuming that the fund continues to perform as it has for the past 10 years, how long will it take for Keeshawn's money to double? 5. Willie plans to invest $4,000 in a bond fund that has been returning 7% compound a
In a slow year, Deutsche Burgers will produce 2.0 million hamburgers at a total cost of $4.4 million. In a good year, it can produce 4.4 million hamburgers at a total cost of $5.0 million. What are the variable and fixed costs of hamburger production? (Enter your answers in dollars not in millions. Round "Variable cost" to 2 dec
This is the first component that discusses the decision-making process of monetary policy and analyzes how a particular recommended policy will affect the U.S. economy. In this Part 1, you will collect data and information about the current economy and submit a short background report in a document in three to five pages.
Problem 1 If interest rates are 8 percent, what is the future value of a $400 annuity payment over six years? Unless otherwise directed, assume annual compounding periods. - Recalculate the future value at 6 percent interest and 9 percent interest. Problem 2 If interest rates are 5 percent, what is the present value of a
Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.10 million. This investment will consist of $2.90 million for land and $9.20 million for trucks and other equipment. The land, all trucks, and all other equipment is expected t
A large networking company wants to incorporate your software into their systems and is offering to pay you $532,000 today, plus $532,000 at the end of each of the following six years for permission to do this. If the appropriate interest rate is 8 percent, what is the present value of the cash flow stream that the company i
Trigen Corp. management will invest cash flows of $347,027, $1,244,578, $1,416,890, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years. If the appropriate interest rate is 9.98 percent, what is the future value of these investment cash flows six years from today? (Round answer to 2 decimal
Find the present value of $4,100 under each of the following rates and periods. (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.) a. 8.9 percent compounded monthly for five years. Present value $ b. 6.6 percen
Question 1 Indicate whether the following are true or false and briefly motivate your answer. a) Time value of money is equal to inflation plus interest b) Fixed cost remains the same even if variable cost and production increase. c) High risk financial instruments are likely to generate high returns d) Annualised compoundi
For the below time value of money problems, complete using formulas in Excel on each separate tab. Mention any assumptions and support each decision made. Question One: You deposited $15,000 today and the interest rate is 8% annually. How much will you have in nine years? Question Two: Tiff will receive a graduation gi
Wainright Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 840 2 1,170 3 1,430 4 1,575 If the discount rate is 9 percent, what is the present value of these cash flows? (Do not round intermediate calcul
Is anyone familiar with this virtual organization to assist with this? Thanks - Evaluate Riordan's current trends, issues in total compensation, and prediction of future trends - Riordan's wage management process and rationale
Part of your new accountant's role will be involved with budgeting for future years. So you can understand where she is coming from, so you ask her to talk about the following with you: Explain how revenue sources are planned and budgeted in nonprofits. What are some typical key assumptions that must be made in the "revenue
You just received $225,000 from an insurance settlement. You have decided to set this money aside and invest it for your retirement. Currently, your goal is to retire 25 years from today. How much more will you have in your account on the day you retire if you can earn an average return of 10.5 percent rather than just 8 percent
Garth's Micro Brewery, whose shares are currently trading at $40 per share, is considering acquiring Wayne's Beer Bottling Co. You have compiled a group of comparable transactions within the beer bottling space and have calculated that since 2004, acquisitions similar (or comparable!) to the one Garth's is currently considering
1) You invest $20,000 today, at a rate of 10% compound quarterly. What will the investment be worth at the end of year twenty? 2) You are offered an annuity that will pay you $9,000 at the end of each of the next 10 years. What is the maximum amount you would be willing to pay today for this annuity? (Assume you require a
I have a discussion that deals with exercises in determining Equivalent Annual Rate (EAR.) This is closely related to the time value of money and deals with how the frequency of compounding of the interest rate affects the value calculation. The result is not the same when interest is compounded quarterly, for example, as it is
Visit the website of Johnson Controls Inc. located at http://www.johnsoncontrols.com, and review its 2012 financial forecasts. According to the forecasts, Johnson Controls will increase capital investments to approximately $1.7 billion. More than 70% of the company's capital expenditures in 2012 are associated with growth and
Please discuss the issues of discounting and not discounting future cash flows for impairment and how it impacts the calculation of impairment as well as how this calculation impacts the balance sheet. Additionally, are there ethical considerations related to discounting of future cash flows for impairment?
Warren has $2000 today. Using the Time Value of Money equations, not Excel functions, do the following using compound interest: a. Determine the interest rate for Warren if $2,500 is returned one year later. b. Determine the rate if $2,500 will be returned in 5 years?
Discuss the impact that increasing inflation will have on your life.
Part I Deliverable Length: 500-700 words Understanding how to properly value a vanilla bond is essential for finance. Find a company with debt and that pays dividends. You can use the following stock screener to find a company: http://www.google.com/finance/stockscreener. Add the criteria of long-term debt to assets to
I need guidance on how to calculate gearing using ordinary share, preference share and debt financing and also how to evaluate and make a recommendation on which to use. - Gearing is the relationship between debt and total equity included in the capital structure of a firm. The two items are different due to their characte
Hi, Please explain why the time value of money is important in an economic decision and how NPV and payback period are used in business to incorporate the time value of money into operational decision. Explain the three basic concepts that are used for estimating the cost of ownership for a single option or in comparing multi